OL-325 Milestone One2OL-325 Milestone OneExecutive Summary: Sonic Records is one of the top recording studios in the music industry, because ofseveral recent changes. Now that people are getting their music from piracy, CD burning andillegal file sharing the creation of E-Sonic is going to propel Sonic Records forward in terms ofhave a new music distribution outlet. There have been online music outlets for about 10 years now, therefore, there will be majorcompetition in this avenue of business. This is equivalent to a new show company coming intothe industry and trying to compete with Nike or Reebok. The companies that they are going upagainst have already stood the test of time and this new company should expect to fight an uphillbattle. There may be a little bit of leverage if a known athlete could sponsor the product but otherthan that, you are starting from scratch. E-Sonics top competitors would be I-Tunes, Sirius XM,and Pandora.Piracy has been one of the biggest industry issues and will add to the uphill battle you will befighting along with the competition. It may be necessary to have an IT team dedicated to helpingE-Sonic fight this battle. E-Sonic is an internet based company and markets all of their music products online whichmakes foreign demand a small issue compared to retail outlets who sell music in a face to facesetting. Being an online music distributor enables E-Sonic to customize their music selection toeach country that is accessing their webpage. Statistics also show a huge international demandfor American music therefore, American products are always going to an additional productavailable to foreign customers.